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Report: Sega Studios San Francisco Closing

Iron Man 2 still on track, but its developer could be shuttered as soon as today.

The only thing that will save Iron Man movie tie-in game developer Sega Studios San Francisco now is a real life Tony Stark. According to reports, the studio, founded in 1999 as Secret Level, will be shuttered, possibly by the end of the day.

The rumor originally appeared yesterday on the Sega Nerds blog, and has since been confirmed by 1Up.

Acquired by Sega in 2006, Secret Level quickly went from a small studio to having more than 100 employees. But the critical and commercial 2008 duds Golden Axe Beast Rider and a game based on the original Iron Man movie led to downsizing and reorganization.

The studio is still on track to release Iron Man 2 for the Xbox 360, PS3, and Wii on May 4.

Sharkey says: The studio had everything riding on the success of Iron Man 2, but it appears it's already too late. Even if Iron Man 2, which does look promising, is a hit, Sega Studios San Fran will be no more. Good luck to all the devs.